UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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| | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On July 31, 2024, we issued a press release announcing our second quarter and first half results for 2024. Following the issuance of the press release, on July 31, 2024 at 5:00 p.m. ET / 2:00 p.m. PT, we will host a teleconference and webcast for analysts, investors, media and others to discuss the results and other business topics. Such financial information included in the Exhibit attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
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Exhibit |
Description |
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99.1 |
July 31, 2024 Second Quarter and First Half 2024 Earnings Press Release |
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104 |
Cover Page Interactive Data File (formatted as Inline XBRL) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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JAKKS PACIFIC, INC. |
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Dated: July 31, 2024 |
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By: /s/ JOHN KIMBLE John Kimble, CFO |
Exhibit 99.1
JAKKS PACIFIC REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS
Gross Margin Rate Improves 130 Basis Points vs. Prior Year
SANTA MONICA, Calif., July 31, 2024 – JAKKS Pacific, Inc. (NASDAQ: JAKK) today reported financial results for the second quarter ended June 30, 2024.
First-half net sales for JAKKS Pacific, Inc. were $238.7 million, a year-over-year decrease of 13.0%, primarily attributable to a lack of new content-related product launches, which occurred in the first half of last year.
Second Quarter 2024 Overview
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● |
Net sales were $148.6 million, a year-over-year decrease of 11.0% |
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o |
Toys/Consumer Products net sales were $104.6 million, a year-over-year decrease of 11.3% |
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o |
Costumes net sales were $44.0 million, a year-over-year decrease of 10.1% |
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● |
Gross profit was $47.6 million, a year-over-year decrease of 7.1% from $51.2 million |
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● |
Gross margin was 32.0%, up 130 basis points vs. Q2 2023 |
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● |
Operating income was $7.6 million (5.1% of net sales) vs. $16.4 million (9.9% of net sales) in Q2 2023 |
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● |
Net income attributable to common stockholders was $5.3 million or $0.47 per diluted share, compared to net income attributable to common stockholders of $6.1 million or $0.58 per share in Q2 2023 |
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Adjusted net income attributable to common stockholders (a non-GAAP measure) was $7.3 million or $0.65 per diluted share, compared to an adjusted net income attributable to common stockholders of $13.3 million or $1.26 per diluted share in Q2 2023 |
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● |
Adjusted EBITDA (a non-GAAP measure) was $12.3 million, vs. $20.7 million in Q2 2023 |
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● |
Trailing twelve month adjusted EBITDA was $51.2 million (7.6% of net sales) down 23% from $66.9 million (9.2% of net sales) in the trailing twelve months ended June 2023 |
Management Commentary
“The first half of 2024 closes with our delivering solid results anchored by our evergreen business of time-tested toy categories and play patterns,” said Stephen Berman, CEO of JAKKS Pacific, Inc. “A lack of new content releases created unfavorable topline comparisons with prior year, but our base business continued to perform and adapt in an ever-changing marketplace.
“We are pleased with our progress to date and our positioning and preparation for the new product we’re shipping in the latter half of the year. Exciting new launches supporting Moana 2, releasing in theatres this November, and Sonic the Hedgehog™ 3, releasing in theaters this December will be the cornerstones of the broad retail support we have secured with our top customers globally. We are also in the middle of the exciting initial launch of our new line of products inspired by “The Simpsons,” the launch of our Authentic Brands Group business as well as several other new IP and category extensions.”
Second Quarter 2024 Highlights
The Dolls, Role-Play/Dress-Up division generated net sales of $63.6 million, up 6.6% from $59.7 million last year. The Action Play & Collectibles division generated net sales of $36.6 million, down 30.5% from $52.6 million last year.
For the first half, North America was down 8%, attributable to the impact of lower contribution from product lines launched in support of new entertainment content and lower Costume sales. International was down 31%, primarily due to orders slipping into the following quarter due to logistics-related issues but also negatively impacted by the content slate comparison with the prior year.
Balance Sheet Highlights
The Company’s cash and cash equivalents (including restricted cash) totaled $17.9 million as of June 30, 2024, compared to $32.4 million as of June 30, 2023, and $72.6 million as of December 31, 2023.
Inventory totaled $51.3 million as of June 30, 2024, compared to $65.1 million as of June 30, 2023, and $52.6 million as of December 31, 2023.
Use of Non-GAAP Financial Information and Reconciliation of GAAP to Non-GAAP measures:
In addition to the preliminary results reported in accordance with U.S. GAAP included in this release, the Company has provided certain non-GAAP financial information including Adjusted EBITDA and Adjusted Net Income (Loss) which are non-GAAP metrics that exclude various items that are detailed in the financial tables and accompanying footnotes reconciling GAAP to non-GAAP results contained in this release. These schedules provide certain information regarding Adjusted EBITDA and Adjusted Net Income (Loss), which may be considered non-GAAP financial measures under the rules of the Securities and Exchange Commission. The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures.
We define Adjusted EBITDA as income (loss) from operations before depreciation, amortization and adjusted for certain non-recurring and non-cash charges, such as reorganization expenses and restricted stock compensation expense. Net income (loss) is similarly adjusted and tax-effected to arrive at Adjusted Net Income (Loss). Adjusted EBITDA and Adjusted Net Income (Loss) are not recognized financial measures under GAAP, but we believe that they are useful in measuring our operating performance.
Management believes that the presentation of these non-GAAP financial measures provides useful information to investors because the information may allow investors to better evaluate ongoing business performance and certain components of the Company’s results. In addition, the Company believes that the presentation of these financial measures enhances an investor’s ability to make period-to-period comparisons of the Company’s operating results.
Investors should not consider these measures in isolation or as a substitute for net income, operating income, or any other measure for determining the Company’s operating performance that is calculated in accordance with GAAP. This information should be considered in addition to the results presented in accordance with GAAP and should not be considered a substitute for the GAAP results. The Company has reconciled the non-GAAP financial information included in this release to the nearest GAAP measures. In addition, because these measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies.
Conference Call Live Webcast
JAKKS Pacific, Inc. invites analysts, investors and media to listen to the teleconference scheduled for 5:00 p.m. ET / 2:00 p.m. PT on July 31, 2024. A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at www.jakks.com/investors. To access the call by phone, please go to this link (2Q24 Registration link) and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call several minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at (www.jakks.com/investors).
About JAKKS Pacific, Inc.
JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include: AirTitans®, Disguise®, Fly Wheels®, JAKKS Wild Games®, Moose Mountain®, Maui®, Perfectly Cute®, ReDo® Skateboard Co., Sky Ball®, SportsZone™, Xtreme Power Dozer®, WeeeDo®, and Wild Manes™ as well as a wide range of entertainment-inspired products featuring premier licensed properties. Through our products and our charitable donations, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkspacific.toys), Twitter (@jakkstoys) and Facebook (@jakkspacific.toys).
Forward Looking Statements
This press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific's business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS Pacific's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, or that any future transactions will result in future growth or success of JAKKS. The “forward-looking statements” contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release.
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CONTACT: |
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JAKKS Pacific Investor Relations |
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(424) 268-9567 Lucas Natalini, investors@jakks.net |
JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
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June 30, |
December 31, |
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2024 |
2023 |
2023 |
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(In thousands) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ | 17,700 | $ | 32,228 | $ | 72,350 | ||||||
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Restricted cash |
202 | 203 | 204 | |||||||||
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Accounts receivable, net |
140,006 | 132,479 | 123,797 | |||||||||
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Inventory |
51,327 | 65,059 | 52,647 | |||||||||
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Prepaid expenses and other assets |
26,457 | 11,227 | 6,374 | |||||||||
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Total current assets |
235,692 | 241,196 | 255,372 | |||||||||
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Property and equipment |
141,326 | 134,091 | 135,956 | |||||||||
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Less accumulated depreciation and amortization |
124,580 | 116,813 | 121,357 | |||||||||
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Property and equipment, net |
16,746 | 17,278 | 14,599 | |||||||||
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Operating lease right-of-use assets, net |
20,667 | 15,249 | 23,592 | |||||||||
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Deferred income tax assets, net |
68,141 | 57,804 | 68,143 | |||||||||
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Goodwill |
35,029 | 35,083 | 35,083 | |||||||||
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Other long-term assets |
1,976 | 2,331 | 2,162 | |||||||||
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Total assets |
$ | 378,251 | $ | 368,941 | $ | 398,951 | ||||||
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Liabilities, Preferred Stock and Stockholders' Equity |
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Current liabilities: |
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Accounts payable |
$ | 55,368 | $ | 57,768 | $ | 42,177 | ||||||
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Accounts payable - Meisheng (related party) |
19,130 | 18,612 | 12,259 | |||||||||
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Accrued expenses |
45,026 | 46,448 | 45,102 | |||||||||
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Reserve for sales returns and allowances |
29,456 | 37,851 | 38,531 | |||||||||
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Income taxes payable |
- | 5,808 | 3,785 | |||||||||
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Short term operating lease liabilities |
7,777 | 9,226 | 7,380 | |||||||||
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Short term debt, net |
5,000 | - | - | |||||||||
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Total current liabilities |
161,757 | 175,713 | 149,234 | |||||||||
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Long term operating lease liabilities |
14,859 | 6,220 | 16,666 | |||||||||
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Accrued expenses - long term |
2,299 | - | 3,746 | |||||||||
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Preferred stock derivative liability |
- | 27,793 | 29,947 | |||||||||
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Income taxes payable |
3,441 | 2,971 | 3,245 | |||||||||
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Total liabilities |
182,356 | 212,697 | 202,838 | |||||||||
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Preferred stock accrued dividends |
- | 5,230 | 5,992 | |||||||||
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Stockholders' equity: |
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Common stock, $.001 par value |
11 | 10 | 10 | |||||||||
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Additional paid-in capital |
294,543 | 277,178 | 278,642 | |||||||||
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Accumulated deficit |
(82,851 | ) | (110,876 | ) | (73,612 | ) | ||||||
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Accumulated other comprehensive loss |
(16,308 | ) | (16,021 | ) | (15,627 | ) | ||||||
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Total JAKKS Pacific, Inc. stockholders' equity |
195,395 | 150,291 | 189,413 | |||||||||
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Non-controlling interests |
500 | 723 | 708 | |||||||||
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Total stockholders' equity |
195,895 | 151,014 | 190,121 | |||||||||
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Total liabilities, preferred stock and stockholders' equity |
$ | 378,251 | $ | 368,941 | $ | 398,951 | ||||||
Supplemental Balance Sheet and Cash Flow Data (Unaudited)
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June 30, |
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Key Balance Sheet Data: |
2024 |
2023 |
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Accounts receivable days sales outstanding (DSO) |
86 | 72 | ||||||
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Inventory turnover (DSI) |
46 | 51 | ||||||
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Six Months Ended |
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Condensed Cash Flow Data: |
2024 |
2023 |
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Cash flows provided by (used in) operating activities |
$ | (27,665 | ) | $ | 20,805 | |||
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Cash flows used in investing activities |
(6,174 | ) | (4,893 | ) | ||||
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Cash flows used in financing activities and other |
(20,813 | ) | (68,971 | ) | ||||
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Increase in cash, cash equivalents and restricted cash |
$ | (54,652 | ) | $ | (53,059 | ) | ||
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Capital expenditures |
$ | (4,627 | ) | $ | (4,918 | ) | ||
JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2024 |
2023 |
Δ (%) |
2024 |
2023 |
Δ (%) |
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(In thousands, except per share data) |
(In thousands, except per share data) |
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Net sales |
$ | 148,619 | $ | 166,933 | (11 | )% | $ | 238,695 | $ | 274,417 | (13 | )% | ||||||||||||
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Less: Cost of sales |
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Cost of goods |
76,599 | 86,156 | (11 | ) | 130,420 | 144,460 | (10 | ) | ||||||||||||||||
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Royalty expense |
22,394 | 27,279 | (18 | ) | 36,170 | 43,933 | (18 | ) | ||||||||||||||||
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Amortization of tools and molds |
2,041 | 2,300 | (11 | ) | 3,468 | 3,389 | 2 | |||||||||||||||||
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Cost of sales |
101,034 | 115,735 | (13 | ) | 170,058 | 191,782 | (11 | ) | ||||||||||||||||
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Gross profit |
47,585 | 51,198 | (7 | ) | 68,637 | 82,635 | (17 | ) | ||||||||||||||||
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Direct selling expenses |
6,255 | 3,980 | 57 | 14,352 | 11,721 | 22 | ||||||||||||||||||
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General and administrative expenses |
33,594 | 30,677 | 10 | 67,786 | 58,671 | 16 | ||||||||||||||||||
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Depreciation and amortization |
93 | 93 | - | 180 | 195 | (8 | ) | |||||||||||||||||
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Selling, general and administrative expenses |
39,942 | 34,750 | 15 | 82,318 | 70,587 | 17 | ||||||||||||||||||
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Income (loss) from operations |
7,643 | 16,448 | (54 | ) | (13,681 | ) | 12,048 | nm | ||||||||||||||||
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Other income (expense): |
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Loss from joint ventures |
- | (565 | ) | nm | - | (565 | ) | nm | ||||||||||||||||
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Other income (expense), net |
72 | 38 | 89 | 210 | 476 | (56 | ) | |||||||||||||||||
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Change in fair value of preferred stock derivative liability |
- | (6,022 | ) | nm | - | (5,875 | ) | nm | ||||||||||||||||
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Loss on debt extinguishment |
- | (1,023 | ) | nm | - | (1,023 | ) | nm | ||||||||||||||||
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Interest income |
88 | 86 | 2 | 464 | 203 | 129 | ||||||||||||||||||
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Interest expense |
(256 | ) | (1,302 | ) | (80 | ) | (399 | ) | (4,305 | ) | (91 | ) | ||||||||||||
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Income (loss) before provision for (benefit from) income taxes |
7,547 | 7,660 | (1 | ) | (13,406 | ) | 959 | nm | ||||||||||||||||
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Provision for (benefit from) income taxes |
2,281 | 1,478 | 54 | (4,447 | ) | 95 | nm | |||||||||||||||||
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Net income (loss) |
5,266 | 6,182 | (15 | ) | (8,959 | ) | 864 | nm | ||||||||||||||||
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Net income (loss) attributable to non-controlling interests |
- | (273 | ) | nm | 280 | (278 | ) | nm | ||||||||||||||||
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Net income (loss) attributable to JAKKS Pacific, Inc. |
$ | 5,266 | $ | 6,455 | (18 | )% | $ | (9,239 | ) | $ | 1,142 | nm | % | |||||||||||
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Net income (loss) attributable to common stockholders |
$ | 5,266 | $ | 6,082 | (13 | )% | $ | (7,909 | ) | $ | 402 | nm | % | |||||||||||
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Earnings (loss) per share - basic |
$ | 0.49 | $ | 0.62 | $ | (0.75 | ) | $ | 0.04 | |||||||||||||||
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Shares used in earnings (loss) per share - basic |
10,801 | 9,871 | 10,577 | 9,871 | ||||||||||||||||||||
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Earnings (loss) per share - diluted |
$ | 0.47 | $ | 0.58 | $ | (0.75 | ) | $ | 0.04 | |||||||||||||||
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Shares used in earnings (loss) per share - diluted |
11,245 | 10,532 | 10,577 | 10,428 | ||||||||||||||||||||
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2024 |
2023 |
Δ bps |
2024 |
2023 |
Δ bps |
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Fav/(Unfav) |
Fav/(Unfav) |
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Net sales |
100.0 | % | 100.0 | % | - | 100.0 | % | 100.0 | % | - | ||||||||||||||
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Less: Cost of sales |
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Cost of goods |
51.5 | 51.6 | 10 | 54.5 | 52.6 | (190 | ) | |||||||||||||||||
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Royalty expense |
15.1 | 16.3 | 120 | 15.2 | 16.0 | 80 | ||||||||||||||||||
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Amortization of tools and molds |
1.4 | 1.4 | - | 1.5 | 1.3 | (20 | ) | |||||||||||||||||
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Cost of sales |
68.0 | 69.3 | 130 | 71.2 | 69.9 | (130 | ) | |||||||||||||||||
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Gross profit |
32.0 | 30.7 | 130 | 28.8 | 30.1 | (130 | ) | |||||||||||||||||
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Direct selling expenses |
4.2 | 2.4 | (180 | ) | 6.0 | 4.3 | (170 | ) | ||||||||||||||||
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General and administrative expenses |
22.6 | 18.3 | (430 | ) | 28.4 | 21.3 | (710 | ) | ||||||||||||||||
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Depreciation and amortization |
0.1 | 0.1 | - | 0.1 | 0.1 | - | ||||||||||||||||||
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Selling, general and administrative expenses |
26.9 | 20.8 | (610 | ) | 34.5 | 25.7 | (880 | ) | ||||||||||||||||
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Income (loss) from operations |
5.1 | 9.9 | (480 | ) | (5.7 | ) | 4.4 | (1,010 | ) | |||||||||||||||
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Other income (expense): |
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Loss from joint ventures |
- | (0.3 | ) | - | (0.2 | ) | ||||||||||||||||||
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Other income (expense), net |
- | - | 0.1 | 0.2 | ||||||||||||||||||||
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Change in fair value of preferred stock derivative liability |
- | (3.6 | ) | - | (2.1 | ) | ||||||||||||||||||
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Loss on debt extinguishment |
- | (0.6 | ) | - | (0.4 | ) | ||||||||||||||||||
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Interest income |
0.1 | - | 0.2 | 0.1 | ||||||||||||||||||||
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Interest expense |
(0.2 | ) | (0.8 | ) | (0.2 | ) | (1.6 | ) | ||||||||||||||||
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Income (loss) before provision for (benefit from) income taxes |
5.0 | 4.6 | (5.6 | ) | 0.4 | |||||||||||||||||||
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Provision for (benefit from) income taxes |
1.5 | 0.9 | (1.8 | ) | - | |||||||||||||||||||
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Net income (loss) |
3.5 | 3.7 | (3.8 | ) | 0.4 | |||||||||||||||||||
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Net income (loss) attributable to non-controlling interests |
- | (0.2 | ) | 0.1 | (0.1 | ) | ||||||||||||||||||
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Net income (loss) attributable to JAKKS Pacific, Inc. |
3.5 | % | 3.9 | % | (3.9 | )% | 0.5 | % | ||||||||||||||||
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Net income (loss) attributable to common stockholders |
3.5 | % | 3.6 | % | (3.3 | )% | 0.1 | % | ||||||||||||||||
JAKKS Pacific, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Information (Unaudited)
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Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||||||||||
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2024 |
2023 |
Δ ($) |
2024 |
2023 |
Δ ($) |
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(In thousands) |
(In thousands) | |||||||||||||||||||||||
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EBITDA and Adjusted EBITDA |
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Net income (loss) |
$ | 5,266 | $ | 6,182 | $ | (916 | ) | $ | (8,959 | ) | $ | 864 | $ | (9,823 | ) | |||||||||
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Interest expense |
256 | 1,302 | (1,046 | ) | 399 | 4,305 | (3,906 | ) | ||||||||||||||||
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Interest income |
(88 | ) | (86 | ) | (2 | ) | (464 | ) | (203 | ) | (261 | ) | ||||||||||||
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Provision for income taxes |
2,281 | 1,478 | 803 | (4,447 | ) | 95 | (4,542 | ) | ||||||||||||||||
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Depreciation and amortization |
2,134 | 2,393 | (259 | ) | 3,648 | 3,584 | 64 | |||||||||||||||||
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EBITDA |
9,849 | 11,269 | (1,420 | ) | (9,823 | ) | 8,645 | (18,468 | ) | |||||||||||||||
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Adjustments: |
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Loss from joint ventures (JAKKS Pacific, Inc. - 51%) |
- | 292 | (292 | ) | - | 287 | (287 | ) | ||||||||||||||||
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Loss from joint ventures (Meisheng - 49%) |
- | 273 | (273 | ) | - | 278 | (278 | ) | ||||||||||||||||
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Other (income) expense, net |
(72 | ) | (38 | ) | (34 | ) | (210 | ) | (476 | ) | 266 | |||||||||||||
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Restricted stock compensation expense |
2,519 | 1,856 | 663 | 5,094 | 3,945 | 1,149 | ||||||||||||||||||
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Change in fair value of preferred stock derivative liability |
- | 6,022 | (6,022 | ) | - | 5,875 | (5,875 | ) | ||||||||||||||||
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Loss on debt extinguishment |
- | 1,023 | (1,023 | ) | - | 1,023 | (1,023 | ) | ||||||||||||||||
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Adjusted EBITDA |
$ | 12,296 | $ | 20,697 | $ | (8,401 | ) | $ | (4,939 | ) | $ | 19,577 | $ | (24,516 | ) | |||||||||
|
Adjusted EBITDA/Net sales % |
8.3 | % | 12.4 | % |
-410 bps |
(2.1 | )% | 7.1 | % |
-920 bps |
||||||||||||||
|
Trailing Twelve Months Ended |
||||||||||||||
|
2024 |
2023 |
Δ ($) |
||||||||||||
|
(In thousands) |
||||||||||||||
|
TTM EBITDA and TTM Adjusted EBITDA |
||||||||||||||
|
TTM net income |
$ | 28,290 | $ | 69,649 | $ | (41,359 | ) | |||||||
|
Interest expense |
2,545 | 10,949 | (8,404 | ) | ||||||||||
|
Interest income |
(1,605 | ) | (321 | ) | (1,284 | ) | ||||||||
|
Provision for (benefit from) income taxes |
2,291 | (42,664 | ) | 44,955 | ||||||||||
|
Depreciation and amortization |
10,400 | 9,794 | 606 | |||||||||||
|
TTM EBITDA |
41,921 | 47,407 | (5,486 | ) | ||||||||||
|
Adjustments: |
||||||||||||||
|
Loss from joint ventures (JAKKS Pacific, Inc. - 51%) |
(11 | ) | 287 | (298 | ) | |||||||||
|
Loss from joint ventures (Meisheng - 49%) |
11 | 278 | (267 | ) | ||||||||||
|
Other (income) expense, net |
(297 | ) | (1,004 | ) | 707 | |||||||||
|
Restricted stock compensation expense |
9,176 | 7,002 | 2,174 | |||||||||||
|
Change in fair value of preferred stock derivative liability |
2,154 | 11,895 | (9,741 | ) | ||||||||||
|
Molds and tooling capitalization |
(1,751 | ) | - | (1,751 | ) | |||||||||
|
Loss on debt extinguishment |
- | 1,023 | (1,023 | ) | ||||||||||
|
TTM Adjusted EBITDA |
$ | 51,203 | $ | 66,888 | $ | (15,685 | ) | (23 | )% | |||||
|
TTM Adjusted EBITDA/TTM Net sales % |
7.6 | % | 9.2 | % |
-160 bps |
|||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||||||||||
|
2024 |
2023 |
Δ ($) |
2024 |
2023 |
Δ ($) |
|||||||||||||||||||
|
(In thousands, except per share data) |
(In thousands, except per share data) |
|||||||||||||||||||||||
|
Adjusted net loss attributable to common stockholders |
||||||||||||||||||||||||
|
Net income (loss) attributable to common stockholders |
$ | 5,266 | $ | 6,082 | $ | (816 | ) | $ | (7,909 | ) | $ | 402 | $ | (8,311 | ) | |||||||||
|
Restricted stock compensation expense |
2,519 | 1,856 | 663 | 5,094 | 3,945 | 1,149 | ||||||||||||||||||
|
Change in fair value of preferred stock derivative liability |
- | 6,022 | (6,022 | ) | - | 5,875 | (5,875 | ) | ||||||||||||||||
|
Loss on debt extinguishment |
- | 1,023 | (1,023 | ) | - | 1,023 | (1,023 | ) | ||||||||||||||||
|
Loss from joint ventures (JAKKS Pacific, Inc. - 51%) |
- | 292 | (292 | ) | - | 287 | (287 | ) | ||||||||||||||||
|
2021 BSP Term Loan prepayment penalty |
- | - | - | - | 150 | (150 | ) | |||||||||||||||||
|
Tax impact of additional charges |
(530 | ) | (1,979 | ) | 1,449 | (1,187 | ) | (2,347 | ) | 1,160 | ||||||||||||||
|
Adjusted net income (loss) attributable to common stockholders |
$ | 7,255 | $ | 13,296 | $ | (6,041 | ) | $ | (4,002 | ) | $ | 9,335 | $ | (13,337 | ) | |||||||||
|
Adjusted earnings (loss) per share - basic & diluted |
$ | 0.67 | $ | 1.35 | $ | (0.68 | ) | $ | (0.38 | ) | $ | 0.95 | $ | (1.33 | ) | |||||||||
|
Shares used in adjusted earnings (loss) per share - basic |
10,801 | 9,871 | 930 | 10,577 | 9,871 | 706 | ||||||||||||||||||
|
Adjusted earnings (loss) per share - diluted |
$ | 0.65 | $ | 1.26 | $ | (0.61 | ) | $ | (0.38 | ) | $ | 0.90 | $ | (1.28 | ) | |||||||||
|
Shares used in adjusted earnings (loss) per share - diluted |
11,245 | 10,532 | 713 | 10,577 | 10,428 | 149 | ||||||||||||||||||
JAKKS Pacific, Inc. and Subsidiaries
Net Sales by Division and Geographic Region
|
(In thousands) |
QTD Q2 |
(In thousands) |
YTD Q2 |
|||||||||||||||||||||||||||||
|
Divisions |
2024 |
2023 |
2022 |
% Change |
% Change |
Divisions |
2024 |
2023 |
2022 |
% Change |
% Change |
|||||||||||||||||||||
|
Toys/Consumer Products |
$ | 104,570 | $ | 117,934 | $ | 148,860 | -11.3 | % | -20.8 | % |
Toys/Consumer Products |
$ | 187,480 | $ | 215,827 | $ | 259,983 | -13.1 | % | -17.0 | % | |||||||||||
|
Dolls, Role-Play/Dress Up |
63,608 | 59,669 | 102,186 | 6.6 | % | -41.6 | % |
Dolls, Role-Play/Dress Up |
104,182 | 107,512 | 164,192 | -3.1 | % | -34.5 | % | |||||||||||||||||
|
Action Play & Collectibles |
36,555 | 52,571 | 37,170 | -30.5 | % | 41.4 | % |
Action Play & Collectibles |
69,563 | 90,417 | 68,868 | -23.1 | % | 31.3 | % | |||||||||||||||||
|
Outdoor/Seasonal Toys |
4,407 | 5,694 | 9,504 | -22.6 | % | -40.1 | % |
Outdoor/Seasonal Toys |
13,735 | 17,898 | 26,923 | -23.3 | % | -33.5 | % | |||||||||||||||||
|
Costumes |
$ | 44,049 | $ | 48,999 | $ | 71,562 | -10.1 | % | -31.5 | % |
Costumes |
$ | 51,215 | $ | 58,590 | $ | 81,320 | -12.6 | % | -28.0 | % | |||||||||||
|
Total |
$ | 148,619 | $ | 166,933 | $ | 220,422 | -11.0 | % | -24.3 | % |
Total |
$ | 238,695 | $ | 274,417 | $ | 341,303 | -13.0 | % | -19.6 | % | |||||||||||
|
(In thousands) |
QTD Q2 |
(In thousands) |
YTD Q2 |
|||||||||||||||||||||||||||||
|
Regions |
2024 |
2023 |
2022 |
% Change |
% Change |
Regions |
2024 |
2023 |
2022 |
% Change |
% Change |
|||||||||||||||||||||
|
United States |
$ | 125,837 | $ | 136,187 | $ | 192,484 | -7.6 | % | -29.2 | % |
United States |
$ | 196,267 | $ | 216,630 | $ | 289,534 | -9.4 | % | -25.2 | % | |||||||||||
|
Europe |
10,264 | 16,638 | 14,447 | -38.3 | % | 15.2 | % |
Europe |
15,999 | 26,800 | 27,836 | -40.3 | % | -3.7 | % | |||||||||||||||||
|
Latin America |
3,239 | 3,067 | 3,823 | 5.6 | % | -19.8 | % |
Latin America |
11,235 | 12,271 | 6,208 | -8.4 | % | 97.7 | % | |||||||||||||||||
|
Canada |
6,288 | 6,799 | 5,537 | -7.5 | % | 22.8 | % |
Canada |
9,658 | 10,853 | 8,916 | -11.0 | % | 21.7 | % | |||||||||||||||||
|
Asia |
1,268 | 1,831 | 2,363 | -30.7 | % | -22.5 | % |
Asia |
2,233 | 3,211 | 4,439 | -30.5 | % | -27.7 | % | |||||||||||||||||
|
Australia & New Zealand |
1,607 | 1,756 | 1,582 | -8.5 | % | 11.0 | % |
Australia & New Zealand |
2,953 | 3,364 | 3,073 | -12.2 | % | 9.5 | % | |||||||||||||||||
|
Middle East & Africa |
116 | 655 | 186 | -82.3 | % | 252.2 | % |
Middle East & Africa |
350 | 1,288 | 1,297 | -72.8 | % | -0.7 | % | |||||||||||||||||
|
Total |
$ | 148,619 | $ | 166,933 | $ | 220,422 | -11.0 | % | -24.3 | % |
Total |
$ | 238,695 | $ | 274,417 | $ | 341,303 | -13.0 | % | -19.6 | % | |||||||||||
|
(In thousands) |
QTD Q2 |
(In thousands) |
YTD Q2 |
|||||||||||||||||||||||||||||
|
Regions |
2024 |
2023 |
2022 |
% Change |
% Change |
Regions |
2024 |
2023 |
2022 |
% Change |
% Change |
|||||||||||||||||||||
|
North America |
$ | 132,125 | $ | 142,986 | $ | 198,021 | -7.6 | % | -27.8 | % |
North America |
$ | 205,925 | $ | 227,483 | $ | 298,450 | -9.5 | % | -23.8 | % | |||||||||||
|
International |
16,494 | 23,947 | 22,401 | -31.1 | % | 6.9 | % |
International |
32,770 | 46,934 | 42,853 | -30.2 | % | 9.5 | % | |||||||||||||||||
|
Total |
$ | 148,619 | $ | 166,933 | $ | 220,422 | -11.0 | % | -24.3 | % |
Total |
$ | 238,695 | $ | 274,417 | $ | 341,303 | -13.0 | % | -19.6 | % | |||||||||||